David Campos

Landlord plaintiff in eviction fee case has history of tenant law violations

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San Francisco landlord attorneys filed a lawsuit on Thursday against San Francisco and five tenants in an effort to overturn Sup. David Campos’ new law requiring higher relocation assistance payments to tenants evicted under the Ellis Act, but the main plaintiff in the case may not be the helpless victim the suit purports him to be.  

Under the recently implemented measure, landlords must now pay the difference between their tenants’ current rent and the cost of “comparable” units for two years, as determined by the City Controller’s Office. Though many property owners haven’t been deterred by the measure, as evidenced by the Ellis Act evictions that continue to sweep the city, a group of landlords and their attorneys filed a lawsuit (Jerrold Jacoby et al. v. City and County of San Francisco, et al.) claiming the new law is unjust.

“The city has tried to change the rules on them,” said attorney Andrew Zacks, who represents the plaintiffs. “We don’t think that is allowed under the law.”

Jacoby, the lawsuit’s main plaintiff, is an 80-year-old property owner who, according to tenant attorney Joseph Tobener, is a “slumlord” who has mistreated his tenants and failed to adequately maintain his valuable rental property.

“He is in the business of landlording. That is all he does,” Tobener, who represents three of the five tenants being sued in the lawsuit, told the Guardian. “The lawsuit against the City only used Jacoby as plaintiff because he is a senior…They think this guy Jacoby, a slumlord, is a perfect plaintiff, but they misrepresent this story in their complaint.”

One of Tobener’s clients, Judith Barrett, is a 62-year-old single mother who teaches English at Galileo High School in San Francisco. She has lived in her current unit for 25 years, and she lives paycheck-to-paycheck.

Barrett, who Jacoby recently evicted using the Ellis Act, has been involved in protracted legal proceedings with her landlord in the past. Tobener said Jacoby and unit co-owner Jeanmarie Hryshko (Jacoby’s ex-wife) have collected more than $22,500 in illegal rent since October 2009, according to a ruling by the San Francisco Rent Board. That’s just the tip of the iceberg, according to Tobener, who said there was “much more prior” but that it extends beyond the statute of limitations.

Using a clause in the San Francisco Rent Board’s regulations, Jacoby claimed “financial hardship” when sued by Barrett over the illegal rent collection. “He tried to file a hardship exemption for the $22,500 at the Rent Board and he lost,” said Tobener, who also noted that Jacoby and Hryshko still owe Barrett an additional $8,000 because they executed the eviction before the reduced rent could cover the landlord’s debt to his tenants.

Barrett’s eviction, according to Tobener, was prompted by a lawsuit filed by tenants that claimed the landlords wouldn’t make “even the most basic repairs to the subject unit.” The lawsuit, which is still pending, claims that Jacoby and Hryshko have saved hundreds of thousands of dollars over the years, though they have an equity of $1.8 million on the two-unit property.

“That’s flat out untrue. There is a chronology that completely undercuts Mr. Tobener’s statement,” Zacks said, noting that aggressive moves by the tenants—specifically ”legal threats” from Tobener—ultimately resulted in the Ellis evictions. “This is exactly why we have the Ellis Act and why it’s an important right for property owners. The notion that [Jacoby] should have to pay $100,000 to stop being a landlord is not only unfair, it’s illegal by state law.”

The “aggressive moves” in question are chronicled in Tobener’s letter to David Wasserman, an attorney involved in the case. Tobener believes Jacoby and Hryshko have no intention of living together, and that they instead hope to rid their debt by evicting their rent-controlled tenants.

“If we are successful in proving that your clients have ulterior motives or are retaliating against the tenants, we will then file a wrongful eviction action against your clients,” Tobener wrote. “By now, I am sure your clients have wrongful eviction insurance. Perhaps they take comfort in the protections this insurance will provide them should they lose their unlawful detainer bid. But, what your clients may not know is that their insurance policy will not cover our largest seam of gold — the treble-damages penalties under the San Francisco Rent Ordinance for wrongful eviction.”

In the event of an unfavorable ruling, Zacks said he and his client don’t plan to remain complacent. “If the local judge agrees with the city,” he said. “We will appeal.”

Indeed, could be just the beginning of epic court battles between landlord and tenants advocates in San Francisco, where the hot housing market has triggered an eviction epidemic. The November ballot includes a tax on real estate speculation, which landlord groups have already threatened a lawsuit to challenge.

“Ellising a two-unit building is a real estate speculation play,” Tobener told the Guardian. “They are going to remodel and sell as TICs [tenants-in-common] to wealthy new owners. They cannot re-let the units, so they have to remodel and sell.”

 

Will San Francisco voters give Muni more money to serve a growing population?

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Beating up on Muni and the San Francisco Municipal Transportation Agency is a perennial pastime for many San Franciscans, who will be given the opportunity to put their money where their mouths are this November. Will they be willing to give Muni the money it needs to serve its growing ridership, even at the cost of other city programs and priorities?

The Board of Supervisors yesterday [Tues/22] voted narrowly to place Sup. Scott Wiener’s Muni funding measure on the fall ballot. It would increase General Fund contributions to the SFMTA as the city population increase, retroactive back to 2003 when the current rate was set, giving the agency an immediate $20-25 million boost to serve the roughly 85,000 new residents the city has added since then.

“For too long City Hall has been slow to prioritize transit funding,” Wiener said in a press release. “We are a growing city, and we need to take firm steps to ensure that our transportation system keeps up with that growth.  Improving transit reliability and capacity and making our streets safer are key to that goal.”

While everyone says they support Muni — even David Looman, the proponent behind the Restore Transportation Balance initiative that seeks more SFMTA funding for cars, which will also appear on that ballot — Wiener has been the rare strong advocate locally for actually giving the agency more money.

Mayor Ed Lee created a $10 million hole in the SFMTA budget by demanding the repeal of charging for parking meters on Sunday this year, and then he dropped his support for a local increase in the vehicle license fee this year, prompting Wiener to introduce his Muni funding measure, which the mayor would have the authority to terminate if voters approve a VLF increase in 2016.

A $500 million general obligation bond transportation measure backed by Lee and the full Board of Supervisors will also appear on the November ballot, but it will go mostly to cover Muni’s capital needs, not the growing demands on its operating budget.

Wiener’s Muni funding measure yesterday barely got the six votes this charter amendment needed to qualify for the ballot: those of Wiener and Sups. London Breed, David Campos, David Chiu, Malia Cohen, and Jane Kim (Sup. John Avalos was absent).

In recent years, there’s been a rift in the city’s progressive coalition between environmental and transportation activists on one side and affordable housing advocates on the other, who sometimes battle over city funding they see as a zero sum game. So it will be interesting to watch how the politics surrounding this measure shape up going into the fall campaign season.  

Refugee crisis hits home

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joe@sfbg.com

In the small, colorful Precita Valley Community Center, a woman clutches a black ceramic goblet, circling a teenage girl with wisps of incense, and repeats the act with the 60 or so attendees. The spiritual cleansing ritual is much needed. Afterward, the San Franciscans will set their minds to saving the lives of children.

Nearly 50,000 Central American children crossed the Mexican border since October, according to federal data, fleeing targeted violence in Honduras, El Salvador, and Guatemala. This recent surge has hit home, as hundreds of those young refugees, often unaccompanied, seek asylum through immigration courts in San Francisco.

The courts often decide between life and death: Do the children stay in the safety of our sanctuary city, or return to countries from which they fled violence and chaos?

Jose Artiga, executive director of the Salvadoran Humanitarian Aid, Research and Education Foundation, told the crowd a story of life in El Salvador.

“A boy of only 11 years old waited for his grandfather one day,” he said, in Spanish. “A gang captured him, and the community organized to search for the boy. They found the child, but in six parts. The grandfather said, ‘How can I bring my grandchild back to his mother in six parts?’ This was a child. The gang showed up at the funeral, and would not let the community bury him.”

Some say the rising power of gangs sparked this surge in immigration. As President Barack Obama struggles with a bitterly partisan and gridlocked Congress to find a solution, US cities are dealing with the impacts of the overburdened immigration court system.

Now politicians of all partisan stripes, activists, and families are coming together to help the child refugees. Just last week, Sup. David Campos’ resolution to find additional aid for overburdened immigration services unanimously passed the Board of Supervisors. The next step, he told the Guardian, is to determine how best to use funds to help these children.

At the Precita Valley Community Center and beyond, activists call for that funding to reach attorneys, without which these kids will almost certainly be sent home into harm’s way.

 

OVERBURDENED

The refugees travel far. Children fleeing violence in El Salvador, Honduras, and Guatemala trek through Mexico to cross the US border, and some die in the attempt. Those who live and are discovered by Border Patrol officers along the Southwest border are held temporarily in crowded, cold detention centers in McAllen, Texas, or Nogales, Ariz.

Images of these detention centers show groups of children lying on hard floors in thin blankets, and some advocates for the refugees reported feces and urine soaking the floors. The young refugees tell officials where they have family connections, and are flown to immigration courts across the country.

One such court is in San Francisco.

In 2005, San Francisco had 227 new active deportation proceedings for unaccompanied children, according to federal data obtained by Syracuse University’s TRAC Immigration project. That number was stable until 2012 when it jumped to 450 new cases. In 2013, the number jumped again, to 820.

San Francisco now has over 1,900 pending juvenile immigration cases, according to TRAC. Most of those children are Salvadoran, Honduran, and Guatemalan. The surge is pushing organizations that help these children to the breaking point.

Lariza Dugan-Cuadra, executive director of the Central American Resource Center, knows one thing for sure: “Things have been crazy.”

CARECEN is one of many organizations providing legal representation to Central American child refugees in San Francisco. Two attorneys and two paralegals handle the bulk of cases, which jumped from 20 children a month to 60.

“All a child is given is a court date,” Dugan-Cuadra told the Guardian. “While the US guarantees the right to court, it does not guarantee the right to representation.”

While US citizens have a constitutional right to representation by an attorney, noncitizens in Immigration Court do not. And when organizations like CARECEN can’t provide an attorney, the child loses.

“We’ve heard cases where a 6-year-old will go before a judge having to represent themselves,” she said. “The judges are throwing their hands up saying ‘Are you serious!?'”

Data obtained by TRAC Immigration backs up her claim.

Nationwide, only 52 percent of unaccompanied children are represented by an attorney in deportation court proceedings.

With an attorney, judges rule in a juvenile’s favor to stay about half the time, TRAC’s research found. Without an attorney? Only one in 10 children are granted asylum.

No legal representation means no hope. The ACLU filed a class-action suit against the United States earlier this month on behalf of unrepresented child immigrants, alleging just that.

“The onus has been hard on nonprofit providers and pro-bono attorneys,” Dugan-Cuadra said, because they know the stakes. Legal Services for Children, Catholic Charities, and the Asian Law Caucus are among the organizations calling for more aid.

Many of the attorneys are experiencing burnout. One we talked to was on a vacation for her mental health. Studies by the American Bar Association show judges are burning out too, and things are only getting worse: California has 77,000 pending immigration cases backlogged in its courts.

But locally, the children bear the worst of this: TRAC Immigration’s data shows only 71 of the new 830 unaccompanied children in San Francisco were represented by an attorney as of June 2014.

And without representation, many will be sent home to violence.

 

REFUGEES OR IMMIGRANTS?

The United Nations Refugee Agency, UNHCR, said the children fleeing Central American countries should officially be considered refugees in need of asylum, a claim with legal ramifications President Obama so far has hesitated to make.

“We’re witnessing a complex situation in which children are leaving home for a variety of reasons, including poverty, the desire to join family, and the growing influence of trafficking networks,” Shelly Pitterman, UNHCR’s regional representative in the United States, said in a press statement. “Within this movement there are also children who are fleeing situations of violence at the hands of transnational organized criminal groups and powerful local gangs.”

Those fleeing violence and persecution, said Pitterman, will require access to asylum determination procedures and will need long-term protection. Others should be sent home, she said, and assisted with reintegration.

But some can’t find refuge anywhere at home, no matter where they go.

“My brother’s son was kidnapped eight years ago by extortionists,” one Salvadoran woman at the Precita center told the Guardian, declining to give her name out of fear for her family’s safety. Her brother moved to other cities, but the gangs continued to harass him and his family in provinces throughout El Salvador.

“He got letters threatening to kidnap his child. ‘We know where you live, we know where your child goes to school,'” she said. Her nephew is now 14. The last time she visited him she saw something that chilled her.

“He was approached by gangs to be recruited. I witnessed that. One day after when we were in the car, my nephew saw the gangs in another car. He hid on the floor and started to shake.”

The woman turned her head away and held back tears.

“My brother said ‘I have to take you out of here.'”

Now her nephew is somewhere safe in the United States, she said, though she would not say where. But the reason he left is clear.

“These kids don’t want to be the next dead body on the street,” Clarisa Sanchez, a Board of Immigration’s representative from Catholic Charities CYO told the Guardian.

Nationally, Republicans are calling for the mass deportation of these children. “I won’t stand idly by while our citizens are under assault and little children from Central America are detained in squalor,” Texas Gov. Rick Perry said this week, as he announced deployment of 1,000 National Guard troops along the Texas border.

But many pin the origins of the crisis squarely on the United States.

 

DRUG LEGACY

Salvadorans are familiar with violence and cruelty. In 1932, more than 30,000 Salvadorans were slaughtered in a peasant revolt called la matanza: the slaughter. Nearly 75,000 civilians died in El Salvador’s bloody civil war, from 1980-1992.

The US government intervened in that war, sending government aid to the Salvadoran government. Now the US has a hand in today’s violence in Central America, some say, as our country’s drug habits fuel cartels throughout the region. Those cartels are arming Central American gangs, whichObama admitted in a press conference last year.

“The United States recognizes that we’ve got responsibilities; that much of the violence in the region is fueled by demand for illegal drugs, including in the United States,” the president said.

Obama requested $3.7 billion emergency funding that would bring at least $64 million to immigration courts, but also at least $1.5 billion to border security and US Immigration and Customs Enforcement, a troubling addition to needed funding.

Back at the Precita Valley Community Center, Jose Cartagena pled for legal aid at the border. Cartagena is intimately familiar with the need: He fled El Salvador’s civil war over 30 years ago. As he crossed the Tucson desert, 13 of his fellow border-crossers died in the blazing southwestern heat. Only Cartagena survived. Now he’s a representative for the National Network of Salvadorans in the Exterior in San Francisco.

He called for justice.

“We have to help these kids find their families or sponsors,” he said. “If we don’t provide legal support now, the Obama administration may deport all of them. We can’t wait until it’s too late.”

If you’d like to help the efforts around the Central American child refugees, you can contact CARECEN, Catholic Charities, or Superivsor David Campos’ office.

More funding promised to Central American child refugees, Lee warns of new influx

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Thousands of Central American children fleeing drug wars and poverty are overwhelming the San Francisco nonprofits who care for them, but new information from the mayor shows this may just be the beginning.

Yesterday, just hours before Supervisor David Campos’ resolution to bolster funding to aid the incoming refugees passed, Mayor Ed Lee warned the Guardian and other journalists that San Francisco is bracing for another influx of even more children in need.

“I met with the federal Health Service System to prepare our city for the possibility of a higher influx [of refugees],” he said. “The numbers seem to be coming in, though they haven’t reached us yet.”

Campos’ measure to focus funding on the needs of Central American child refugees passed by unanimous vote, likely because its sorely needed. Nonprofits in San Francisco like the Central American Resource Center (CARECEN) and other sounded the alarm: there are too many refugees, and not enough caregivers and legal aid to help them. More than 36,000 Central American children (often unaccompanied) entered the US illegally between Oct. 2013 and May this year, according to widely reported federal data. The number of Mexican children entering the US dropped to about 17,000. 

But why are they coming here? Many reasons, but mostly they’re fleeing violence. Honduras, for instance, was the murder capital of the world, with 79 people murdered in every 100,000, according to Reuters. Neighboring El Salvador didn’t do much better, with the second highest murder rate per capita in the world. 

“I am from Honduras and I just turned 16-years-old,” a teenager named Juan said, in a statement from CARECEN, “I came after my father was murdered and I feared for my life that I was next. If I go back I’m not sure that I can go back and live a good life. I want to go to school and live so I can grow up to do something good.”

False rumors in Central America that the US is offering permisos, meaning, permanent status, also spurred an influx of refugees. 

CARECEN’s Washington D.C., Los Angeles and San Francisco locations are advocating for President Barack Obama to declare a state of emergency and aid these refugees. But as the federal government grasps at possible solutions, local government is stepping in to help those reaching the city. 

“There’s a long history on this board on calling out against injustices we’ve seen in different parts of the world,” Campos said at the board yesterday as he introduced his measure, adding “They’re escaping not just political turmoil but violence in their lives.”

“These are children,” he said. 

Lee said one of the biggest challenges in helping these children may be a cultural one.

“I’m trying to wrap my arms around the fact that many of these kids don’t speak Spanish,” Lee told the Guardian yesterday. “They speak Mayan and different languages. This will test our cultural competency.”

Campos is planning a hearing on how best to focus funding to aid the child refugees, but hasn’t yet settled on a date for said hearing. 

“Let’s Elect Our Elected Officials” rejected at the Board of Supes

At today’s (Tue/15) Board of Supervisors’ meeting, members of the board voted 6-5 against placing a proposal on the November ballot that would create special elections when vacancies arise on the Board or in the Mayor’s Office.

If approved by voters, the measure would have immediate impacts on San Francisco’s political landscape. Board President David Chiu is vying for a seat in the California Assembly against Sup. David Campos, which will leave a vacancy on the board one way or another. 

But Sup. John Avalos, who authored the charter amendment proposal, noted that “this measure is not about any existing mayor or any existing supervisor.” Instead, Avalos described the measure as a bid to make city policy more democratic. 

“It will allow voters to decide who fills vacancies in special elections,” Avalos said.

As things stand, when a supervisor’s seat is vacated, it’s up to the mayor to appoint that official’s replacement. When a mayor’s seat is vacated, a much more rare occurrence, it’s up to “a small minority of people – us,” to appoint the city’s top elected official, Avalos said. “This shapes how decisions are made, often behind closed doors.”

Taking this question to voters via special election would ultimately be more democratic, he added. “If you are on the fence on this measure, I hope you can still send this ballot measure over to the voters,” Avalos told his colleagues.

Sups. London Breed, Katy Tang, and Scott Wiener each spoke in opposition to the idea.

“It’s not a perfect system, but no system ever is,” Breed said. “I’m not sure what problem we’re trying to solve with changing the charter.”

Wiener sounded a similar note. “There are various ways you can do it, and no way is necessarily better or worse,” he said of the current system for appointing vacancies. “I don’t see how the system that we have is in any way broken.”

But Sup. David Campos chimed in to challenge that framing. “The question before this board is not, what is the best system? … The question is a lot simpler than that,” Campos said, “Since we are talking about democracy. The question is: Will we give voters in SF the opportunity to decide for themselves what the best system is? Let’s not you and I pre-judge what the voters are going to say.”

In the end the measure failed six to five, with Sups. Mar, Avalos, Campos, Chiu, and Jane Kim voting in favor.

Alerts: July 16 – 22, 2014

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THURSDAY 17

 

Comedy and music fundraiser for David Campos

El Rio, 3158 Mission, SF. davidcampossf.com/elrio. 7-9pm, $7 minimum donation requested. This is a fundraising event for California Assembly candidate David Campos, featuring comedians Yayne Abeba, Frankie Quinones, Steve Lee and Lisa Geduldig; and music by Candace Roberts (and Larisa Migachyov); and Dr Loco y Sus Cuates (featuring The Pena Goveas, Tomas Montoya and Francisco Herrera). El Rio will match and donate $7 for the first 75 tickets.

 

 

Laborfest: FilmWorks United International Working Class Film Festival

518 Valencia, SF. laborfest.net. 7-9pm, free. LaborFest was established to institutionalize the history and culture of working people in an annual cultural, film and arts festival. This screening will feature four short films. The Plundering, by Oliver Ressler, documents extreme privatization during the transformation of the former Soviet republic Georgia towards independence and capitalism. Made In The USA, Tom Hudak’s Plan to Cut Your Wages, by Bill Gillespie, exposes the ideology of “open shop” states that seek to prevent unionization. Judith: Portrait of a Street Vendor, by Zahidi Pirana, tells the story of one of the thousands of immigrant workers in major U.S. cities who make their living as street vendors. High Power, by Pradeep Indulkar, offers a glimpse into the lives of workers at India’s Tarapur nuclear power plant, built 50 years ago in a poor rural community.

 

FRIDAY 18

 

Fourth Annual San Francisco Living Wage Awards Dinner

SEIU 1021 Hall, 350 Rhode Island, SF. livingwage-sf.org. 6:30pm, $35 in advance; $50 at the door. In addition to dinner and cultural performances, this event will honor activist and San Francisco Labor Council board member Maria Guillen as Labor Woman of the Year, and Allan Fisher, activist with AFT Local 2121 and delegate to the San Francisco Labor Council, as Labor Man of the Year.

 

SUNDAY 20

Meeting: Mayhem in Iraq and the U.S. Role

New Valencia Hall, 747 Polk, SF. globalexchange.org/events. 1pm, free. $8 donation requested for brunch, served at 12:15pm. Hosted by the Bay Area Freedom Socialist Party, this forum will explore questions on the latest turn of events in Iraq. What are the factors behind the new crisis? What responsibility does the U.S. bear, given the interests of oil and armament industries in the Middle East? Does the massive damage from the first Gulf War impact the current situation? What can we do to help? Bring your ideas and participate in this lively discussion.

Supes to vote on Avalos’ “Let’s Elect Our Elected Officials” measure

The San Francisco Board of Supervisors will vote tomorrow (Tue/15) on whether to submit a charter amendment to the ballot that would require a special election in the event of a vacancy on the Board of Supervisors or in the mayor’s office.

As things stand, the mayor holds the power to appoint someone to fill a vacant seat on the board. But Sup. John Avalos’ proposed ballot measure, unofficially dubbed “Let’s Elect our Elected Officials,” would shift that decision-making power to the voters. The measure needs six votes to pass.

If it wins voter approval, the measure would also likely have a significant impact on the city’s political landscape in the immediate future.

Sup. David Campos, who is co-sponsoring the initiative, is currently vying for a seat in the 17th Assembly District against Board President David Chiu, a narrow race that will leave a vacancy on the Board one way or another. If Campos, one of the board’s most progressive members, is elected, Mayor Ed Lee would presumably appoint someone to his seat with a rather different political bent.

The ballot needs an additional three votes (beyond its three sponsors) to reach the necessary six votes necessary for approval by the Board, and “it’s sort of up in the air at the moment,” according to Jeremy Pollock, Avalos’ legislative aide.

Some supervisors are reluctant to go against Lee by limiting mayoral power. Opposition from Sup. Katy Tang, herself a beneficiary of the current rules when she was appointed by Mayor Lee in February 2013, has also had an effect of the amendment’s approval.

But supporters of the bill are hoping the overall benefits of the measure will lead the supervisors to approve it.

“John sees this as a good government reform that takes some power away from the mayor and the Board and gives it to the voters,” Pollock said, with the hope that it would also work to discourage backroom deals.

Another potential issue raised over the approval of the measure is the cost of special elections, though it appears to be a relatively minor concern. According to the San Francisco Department of Elections, a special election for supervisors costs roughly $300,000 (a drop in the ocean given the city’s multi-billion dollar budget) and around $3.5 million for a citywide election, a substantial sum but also a relatively minor worry given the rarity of vacancies in the mayor’s office. Some might argue that given the importance of the mayor’s duties, that’s a small price to pay to allow the voters to have a say.

In addition to its main rule change, the measure includes a few other provisions, such as making an exception for the proposed rule if a regularly scheduled election would be held within 180 days of the vacancy.

It would also provide “that the Mayor appoints an interim Supervisor to fill a supervisorial vacancy until an election is held to fill that vacancy,” with the key addition that the interim supervisor would be ineligible to compete in that election.

That’s no small stipulation, given the sweeping historic success of incumbents in board re-elections. (Since 2000, when district elections returned, Christina Olague is the only incumbent who failed to gain re-election after being appointed.) Avalos appears set on plugging all holes with his proposed legislation, and it’s now up to the board to place it on the November ballot.

Angry building owners threaten lawsuit over anti-speculation tax

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Opponents of the anti-speculator tax that will appear on the November ballot blasted the proposal in a City Hall hearing yesterday [Thu/10] — pledging to defeat the measure in court even if voters approve it — but they were overwhelmed by a strong turnout from supporters who said real estate speculation drives up the cost of housing without adding any value.

“We can sue you in court on the many of the unconstitutional aspects of this and we will do that,” Janan New, director of the San Francisco Apartment Association, said of the measure that would charge a 24 percent tax on properties flipped within a year of purchase down to a 14 percent tax if flipped within five years.

New and other allies — including San Francisco Association of Realtors, Small Property Owners of San Francisco, and Sup. Katy Tang — claimed that the measure is illegally retroactive because it affects those who recently bought property and that it doesn’t account for people who need to sell their properties because of job loss or other life changes.

“This is almost tantamount to a confiscation of property,” Peter Rich of SPOSF said at the hearing.

But Sup. David Campos — who placed the measure on the ballot along with Sups. Eric Mar, Jane Kim, and John Avalos — refuted allegations that the measure isn’t legally sound and carefully questioned City Attorney’s Office staff to clarify the laws that allow for the measure.

“I know there’s a lot of ulterior motives here because we do know this is going to be challenged in court, so I want to be very clear,” Campos said in response to a line of questioning from Tang, who continued to maintain, “So it’s retroactive in a sense” after being told by the deputy city attorney that it wasn’t retroactive because the tax only applies to future property sales.

The anti-speculation tax was first introduced by then-Sup. Harvey Milk shortly before his assassination in 1978 (Dianne Feinstein killed the measure after becoming acting mayor), and it was revived this year during a series of tenant conventions and sponsored by Mar.

“What we’re proposing is very reasonable to deal with the affordable housing crisis,” Mar said at the hearing, noting that it exempts single-family homes, projects larger than 29 units, and sales triggered by the death of the property owner. “It’s been crafted with enough exemptions to protect the small guy and really go after the profiteers.”

During the public comment period, where supporters on the measure vastly outnumbered opponents, several speakers referenced Harvey Milk and said housing in San Francisco wouldn’t be so expensive today if the measure had passed back then, a time when evictions and displacement were also on the rise.

“He was assassinated before it came to fruition. The parallels to that time and today are striking,” testified Tom Temprano, president of the Harvey Milk LGBT Democratic Club, who urged supervisors to “honor the legacy of Harvey Milk by passing this thoughtful and well-crafted legislation.”

Brian Basinger, head of the AIDS Housing Alliance, played old video footage of Milk talking about the measure back in 1978, shortly after he was evicted from his Castro Street camera store by a landlord seeking higher rents, noting that profiteering forces San Franciscans to spend too much on housing and have too little left over for other needs.

“So when you look at that, it’s going to affect the larger economy,” Milk said of real estate speculation.

Gen Fujioka, who works at Chinatown Community Development Center and spoke for San Franciscans Against Real Estate Speculation, cited recent evidence of properties snapped up by speculators and quickly flipped for profits of 50 percent of more.

“Basically, what we’re seeing today is an escalation in the sales prices of multi-unit buildings beyond what people can pay in rent,” Fujioka testified, noting how that essentially forces landlords to evict rent-controlled tenants to make the investments pencil out. “That kind of price escalation is causing instability in our communities.”

But opponents lashed out at the measure and the characterization that they were profiteering in ways that hurt people. “It’s a housing tax and it doesn’t make sense to have a housing tax in the most expensive city in the country,” said Jay Chang of the Association of Realtors.  

Aaron Jones said he and his wife invested their children’s college savings in a small apartment building, and that they’re good landlords who should be able to sell the property when they want to without penalty.

“We can’t sell until 2017 with this retroactive, punitive tax,” Jones said, saying there were many other small investors like him who were afraid to speak up because “in San Francisco, to be an investor — not a speculator — is to be the devil.”

But supporters of the measure say their intention isn’t to demonize property owners but to do something about the eviction and displacement crisis that is changing the face of the city, and to create a disincentive to bad behavior.

“It’s really the most vulnerable people who are being affected by evictions,” said Erin McElroy of the Anti-Eviction Mapping Project, citing her group’s research showing 72 percent of recent evictions have been of the elderly or disabled.

“Speculation is the commodification of housing and housing is essential,” said Chris Durazo of the Veterans Equity Center.

Campos said most landlords should support the measure as check against speculators that are pushing up the price of housing, triggering evictions, and creating a divisive politcal climate: “Speculators are giving landlords in San Francisco and property owners in San Francisco a bad name.”

SF to consider joining Richmond in fighting banks over underwater mortgages

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Plans to ease San Francisco’s often overlooked home foreclosure crisis will have to wait a bit longer. The San Francisco Board of Supervisors this week delayed a resolution that would show the city’s “intent” to save underwater mortgages in favor of a resolution that might actually have begin to intervene in underwater mortgages.

“The idea of people losing their homes is very disheartening,” Sup. John Avalos told the Guardian. “I’m looking forward to an ordinance that would actually allow San Francisco to join a JPA [Joint Powers Authority] and enable us to have leverage over banks.”

The original proposal would have stated San Francisco’s “intention” to form a JPA with the City of Richmond in the obscure—and controversial—use of eminent domain to acquire and fix underwater mortgages for homeowners in working class neighborhoods. But Avalos said that the resolution was primarily aimed at supporting Richmond in defending its principal reduction program.

“The resolution in support of Richmond’s work is not as timely as it was and I want to make sure I can work with you colleagues about the relationship around how we can actually have an ordinance to join a JPA with the city of Richmond and have all of our questions answered as we’re going through that process,” he told the Board of Supervisors on Tuesday.

Eminent domain is a law that allows the government to purchase private property for public use, including nontangible assets such as mortgages. The use of eminent domain to acquire underwater mortgages (when mortgage payments that exceed the value of homes) could be a godsend for homeowners who have been bamboozled by predatory lenders.

Yet Richmond, receiving national attention for the gutsy strategy, faced intense criticism—even federal lawsuits—from banks and financial institutions of late. Certain banks and financial institutions warned lending would halt if the strategy were attempted. Although Richmond recently braved attempts to quash its principal reduction plan, a JPA with San Francisco would allow both cities to leverage some power over banks.

“One city doesn’t have the resources to do it alone,” Sup. David Campos, who co-sponsored the resolution, told the Guardian. “Collectively joining forces can do it, and can be strengthened by taking a regional approach.”

Yet Avalos explained that he has already experienced disagreement from banks, including Well Fargo. “We are swimming against the tide—against the institutions of our banks that have a stronghold on how local loans and mortgages are kept at high interest rates, on the ability homeowners have to renegotiate loans, and on how we can improve the actual principal of our loans,” he told the Board of Supervisors, which was met by public applause.

“People don’t feel a sense of urgency about the housing crisis, and we need to convince them,” Avalos told the Guardian. “Overall we’re two years from the Occupy movement that challenged banks, and people have forgotten the feeling of the time where people questioned how much power banks had over the loan modification.”

In San Francisco, focus has indeed shifted toward out-of-control rents, though fallout from the mortgage crisis still persists. Over 300 underwater mortgages are concentrated in San Francisco’s working class communities, 90 percent of which contain predatory features, according to the Mortgage Resolution Partners, a company helping Richmond administer and finance their principal reduction plan.

Although roughly 64 percent of San Francisco residents are renters, some working class community member still own their homes, and some, like Carletta Jackson-Lane—who has lived in District 10 for 27 years and who spoke at this week’s meeting during public comment—feels that the African American community has been hit especially hard by foreclosures.

“Don’t forget that foreclosures are directly related to the outward migration of African American families out of San Francisco,” she said. “The reality is that in the Mission, there’s a different impact because they were mostly renters.

“The other impact in the African American community—especially in District 10—is that they were single family property owners, so when the foreclosure crisis happened, it knocked them out,” she explained. “And that’s multiple generations.”

Avalos sent the resolution back to committee for modification, and he expects a resolution to be voted on in August. “I don’t want San Francisco to be a place where only the wealthy can survive,” Avalos said.  “But in order to make serious changes we have to break a few eggs.”

When asked what those eggs were, he responded, “What currently is.”  

Elder care facility under pressure not to move forward with evictions

A group of senior citizens, mostly in their 80s and 90s, faces eviction from the University Mound Ladies Home, a San Francisco elder care facility serving residents of modest means that has been in operation for 130 years.

The University Mound Board of Trustees has said the nonprofit organization that runs the home is too far in debt to keep the doors open.

Nevertheless, interim director Bill Brinkman and members of the Board of Trustees have rejected the city’s offer of temporary financial assistance. University Mound has entered into an agreement to sell the facility to Alta Vista School for $5.4 million as a way to pay off its debts, making it clear at a public hearing that it would not reconsider this plan despite the city’s attempts to intervene on behalf of the impacted residents.

At the Board of Supervisors’ Neighborhood Services and Safety Committee today [Thu/10], Sup. David Campos put board treasurer John Sedlander on the spot.

“The city has given you every opportunity to stay open,” Campos said, referencing offers made when his office met with University Mound leadership shortly after the closure was announced. “We are willing to put money on the table, to keep this open temporarily, until we find a long-term viable solution. Are you willing to accept that?”

But Sedlander insisted that this was not a viable option. “We’ve been financing our operations for the past six years … with debt,” he said. “We are unable to make the payroll unless we were to close this facility. … It’s one of those things that’s just a model that doesn’t work.” 

The closure has sparked widespread community concern, in part because it can be very dangerous to force people in frail health to move.

“They’re playing with people’s lives,” Eddie Shine, whose mother is 97 and lives at University Mound, told the Bay Guardian. “A move would be devastating, which is why I’m so passionate about this,” she added.

Speaking during public comment, Anna Stratton said she was concerned that her 87-year-old mother would “feel isolated and alone” after being transferred to a Hayward retirement home. “When we transferred her [to University Mound] she did not eat for seven days,” Stratton explained, noting that this would arise as a concern yet again with the pending move.

In May, residents were issued eviction notices indicating that they would have to move by July 10. That date has since been extended to July 31.

Campos said the city would explore every possible route to prevent University Mound from closing down and evicting the seniors, including the possibility of rezoning the property to be maintained as a retirement home since the benefactors behind the original endowment established that it should function as such. After public comment was over, Campos called Sedlander back to the podium.

“You heard the testimony,” he told the University Mound board treasurer. “You know the city is going to do everything we can to block you” from moving forward with the July 31 eviction. “I am going to give you the option to do the right thing here,” he went on. “Are you prepared to call that deadline null and void?”

Sedlander responded that he was not prepared to rescind the evictions.

The item was continued and will likely come up for discussion again before July 31. “I will fight to do everything I possibly can till hell freezes over to make sure we stop the closure of this facility,” Campos said. “If the city has to fight to make it happen, then the city will fight to make it happen.”

San Francisco to provide right to counsel for tenants facing eviction

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OPINION San Francisco is the second most unequal city in the nation. Working and middle-income people and families are being forced to flee the city they love. Between 2010 and 2013, Ellis Act evictions alone increased by 170 percent.

In 2013, a total of 3,662 San Franciscans were served with eviction notices. Over 1,000 of these tenants went to court without lawyers. According to court statistics, 90 percent of landlords hire attorneys, while only 10 percent of tenants have a lawyer. This inequity has made it more difficult for tenants to adequately assert their rights.

To level the playing field, the San Francisco Board of Supervisors Budget and Finance Committee just designated $1 million to fund 10 nonprofit housing attorneys to perform full scope legal services for any tenant facing eviction in San Francisco. We teamed up with tenant rights organizers and attorneys to fight for this budget allocation in order to address San Francisco’s affordability crisis. This funding will ensure that all San Franciscans facing eviction will receive legal assistance if they need it.

Crucial to ensuring economic diversity in this city is protecting our rent-controlled housing stock. Every time a tenant is evicted from his or her apartment, we lose another unit of price-controlled housing that is safe from the current astronomical market rental and sale prices. The board has passed local legislation that helps tenants remain in the city after an eviction, including Sup. Campos’ legislation increasing relocation assistance amounts after an Ellis Act eviction.

However, only the state Legislature has the power to change the law in a manner that would make a large impact on the frequency of evictions. Sadly, last week, Sen. Mark Leno’s bill that would have curbed Ellis Act evictions died in the Assembly Housing Committee. Leno said he will not further pursue the bill this year. Therefore, we must continue to act locally to deal with our housing crisis.

Legal representation for tenants is a crucial part of the fight against displacement. Several academic studies have shown that tenants are five to 10 times more likely to stay in their homes after receiving an eviction notice if they are represented by an attorney throughout the eviction process. Furthermore, having an attorney protects the tenants against abusive practices by landlords.

Tenant advocates report that illegal harassment by landlords is on the rise in an effort to force out tenants without having to resort to the formal eviction process. It is common practice for landlords to attempt to “buy out” tenants by offering a monetary sum to vacate a unit outside of the legal process. Vulnerable tenants, including immigrants and tenants who live in Section 8 housing, are often forced out of their units because they do not understand or assert their rights. Even if the action results in the tenants leaving, an attorney can help tenants avoid having an eviction on their record, which makes it much more difficult for the tenants to rent again.

We are fortunate to have 14 excellent nonprofit organizations in San Francisco that provide no- or low-cost legal services to tenants. However, these organizations have been woefully underfunded and do not have sufficient staff to address this housing crisis. The budget allocation of $1 million to fund 10 additional tenant attorneys will have a profound impact on San Francisco’s housing crisis. It will also make San Francisco one of the first cities in the country to provide a right to legal assistance to tenants facing eviction. Just as the Constitution allows an attorney for a person accused of a crime, a person threatened with the loss of his or her home should have legal assistance. San Francisco can and should lead the way when it comes to providing legal assistance to those tenants who need it.

Public Defender Jeff Adachi and Supervisor David Campos are elected officials in San Francisco.

Taxing speculators

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steve@sfbg.com

Political tensions over evictions, displacement, real estate speculation, and rapidly rising housing costs in San Francisco are likely to heat up through the summer and autumn as a trio of November ballot measures are debated and combated by what’s expected to be a flood of campaign cash from developers and other real estate interests.

Topping the list is a tax measure to discourage the flipping of properties by real estate speculators. Known generally as the anti-speculation tax — something then-Sup. Harvey Milk was working on at the time of his assassination in 1978 — it was the leading goal to come out of a citywide series of tenant conventions at the beginning of this year (see “Staying power,” 2/11/14).

“To be in a position to pass the last thing Harvey Milk worked on is a profound opportunity,” AIDS Housing Alliance head Brian Basinger told us, arguing the measure is more important now then ever.

The measure has been placed on the ballot by Sups. John Avalos, David Campos, Jane Kim, and Eric Mar and is scheduled for a public hearing before the Board of Supervisors Rules Committee on July 10 at 2pm.

“It’s an absolutely key issue for San Francisco right now. Passing this measure will create a seismic shift in what we’re seeing with evictions and displacement in the city,” Sara Shortt, director of the Housing Rights Committee, told the Guardian.

The measure creates a supplemental surcharge on top of the city’s existing real estate transfer tax, a progressive rate ranging from a 24 percent tax on the sale of a property within one year of its purchase to 14 percent if sold between four and five years later.

In addition to levying the tax, the measure would also give the Board of Supervisors the power to waive that tax “subject to certain affordability-based restrictions on the occupancy of the real property,” giving the city leverage to expand and preserve deed-restricted affordable housing.

Meanwhile, there’s been a flurry of backroom negotiations surrounding the City Housing Balance Requirement measure sponsored by Sup. Jane Kim, which would require market rate housing projects to get a conditional use permit and be subjected to greater scrutiny when affordable housing falls below 30 percent of total housing construction (with a number exemptions, including projects with fewer than 24 units).

That measure is scheduled for a hearing by the Rules Committee on July 24 and, as an amendment to the City Charter, it needs six votes by the Board of Supervisors to make the ballot (the anti-speculation tax is an initiative that requires only the four supervisorial signatures that it now has).

Mayor Ed Lee and his allies in the development community responded to Kim’s measure by quickly cobbling together a rival initiative, Build Housing Now, which restates existing housing goals Lee announced during his State of the City speech in January and includes a poison pill that would invalidate Kim’s housing balance measure.

Together, the measures will draw key battle lines in what has become the defining political question in San Francisco these days: Who gets to live here?

 

COMBATING SPECULATORS

In February, Mayor Lee and his allies in the tech world, most notably venture capitalist Ron Conway, finally joined housing and other progressive activists in decrying the role that real estate speculators have played in the city’s current eviction and displacement crisis.

“We have some of the best tenant protections in the country, but unchecked real estate speculation threatens too many of our residents,” Lee said in a Feb. 24 press release announcing his support for Sen. Mark Leno’s Ellis Act reform measure SB 1439. “These speculators are turning a quick profit at the expense of long time tenants and do nothing to add needed housing in our City.”

The legislation, which would have prevented property owners from evicting tenants using the Ellis Act for at least five years, failed in the Legislature last month. So will Lee honor his own rhetoric and support the anti-speculation tax? His Communications Director Christine Falvey said Lee hasn’t yet taken a position on the measure, but “the mayor remains very concerned about real estate speculators.”

Peter Cohen of the Council of Community Housing Organization said Lee and his allies should support the measure: “It seems so clearly aligned with the same intent and some of the same mechanics as Ellis Act reform, which had the whole city family behind it.”

“I think it would be very consistent with their position on Ellis Act reform to support the anti-speculation tax,” Shortt told us. “If the mayor and tech companies went to bat for the anti-speculation tax, and not against it, that would show they have real concern about displacement and aren’t just giving it lip service.”

Conway’s pro-tech group sf.citi didn’t returned Guardian calls on the issue, nor did San Francisco Planning and Urban Research Association, but their allies in the real estate industry strongly oppose it.

“As Realtors, our goals are to increase housing availability and improve housing affordability,” San Francisco Association of Realtors CEO Walk Baczkowski told the Guardian. “We don’t believe the proposal from Sup. Mar, which is essentially a tax on housing, will accomplish either of those goals.”

But supporters of the measure say real estate speculation only serves to drive up housing costs.

“We have been successful at bringing people around on the issue of real estate speculation,” Basinger told us. “But of course, there will be financed opposition. People will invest their money to protect their interests.”

“We know it’s going to be a fight and we’ll have to put in a lot of resources,” Shortt said, adding that it’s a fight that tenant activist want to have. “Part of what fuels all of this [displacement] is the rampant real estate speculation. We can’t put profits above people.”

 

MAYOR’S MEASURE

Falvey denies that Lee’s proposal is designed simply to negate Kim’s measure: “Build Housing Now specifically asks the voters to adopt as official city policy the Mayor’s Housing Plan to create 30,000 new homes by 2020 — the majority within reach of low, moderate, and middle income residents. This is not a reaction, but a proactive measure that lets voters weigh in on one of the mayor’s most important policy priorities.”

Yet the most concrete thing it would do is sabotage the housing balance measure, an intention it states in its opening words: “Ordinance amending the Planning Code to prohibit additional land use requirements such as conditional use authorizations, variances or other requirements on housing projects…based on a cumulative housing balance ratio or other similar criteria related to achieving a certain ration of affordability.”

Beyond that, it would have voters validate Lee’s housing goal and “urge the Mayor to develop by December 31, 2014 a Housing Action Plan to realize this goal.” The measure is filled with that sort of vague and unenforceable language, most of it designed to coax voters into thinking it does more than it would actually do. For example, it expands Lee’s stated goal of 30 percent of that new housing being affordable by setting a goal of “over 50 percent within reach of low and middle income households.”

But unlike most city housing policies that use the affordable housing threshold of those earning 120 percent of area median income (AMI) and below, Lee’s measure eschews that definition, allowing him and his developer allies to later define “middle income households” however they choose. Falvey told us “he means the households in the 50-150 percent of AMI range.”

The measure would also study the central premise of Mayor Lee’s housing policy, the idea that building more market rate housing would bring down the overall price of housing for everyone, a trickle-down economic argument refuted by many affordable housing advocates who say the San Francisco housing market just doesn’t work that way because of insatiable and inelastic demand.

“Within 60 days of the effective date of this measure, the Planning Department is directed and authorized to undertake an economic nexus analysis to analyze the impact of luxury development on the demand for middle income housing in the City, and explore fees or other revenue sources that could help mitigate this impact,” the measure states.

Shortt thinks the mayor’s measure is deceptive: “It’s clever because for those not in the know, it looks like a different way to solve the problem.” But she said the housing balance measure works well with the anti-speculation tax because “one way to keep that balance is to make sure we don’t lose existing rental stock.”

And advocates say the anti-speculation tax is the best tool out there for preserving the rental housing relied on by nearly two-thirds of city residents.

“It’s the best measure we have going now,” Basinger said of the anti-displacement tax. “Mayor Ed Lee and his tech supporters were unable to rally enough support at the state level to reform the Ellis Act, so this is it, folks.”

Recycle-pocalypse

16

Joe@sfbg.com

Red explosions and yellow starbursts lit the sky, accompanied by the requisite oohs and aahs.

San Franciscans sat by the beach at Aquatic Park celebrating our nation’s independence, eyes fixed upwards. But all around them, a team of independent scavengers, mostly ignored, methodically combed the wharf, plucking cans and bottles from the ground and overflowing trash bins.

Often derided as thieves or parasites, these workers are cogs in a grand machine instituted by California’s Bottle Bill in 1986, forming a recycling redemption economy meant to spur environmentalism with market principles.

The concept is simple. Taxpayers pay an extra five cents when they buy a can or bottle, and may redeem that nickel by trading the used can or bottle in at a recycling center. Thus, more recycling is spurred.

But now a wave of recycling center evictions is causing San Francisco’s grassroots recycling economy to crumble, and newly released numbers reveal just how much stands to be lost by the trend.

San Franciscan recyclers may miss out on millions of dollars in redemption, local mom-and-pop stores could wind up on the hook for millions of dollars in state fees, and neighborhoods stand to be besieged by recyclers flocking to the few remaining recycling centers.

Recycling activists and local businesses are pushing for change, but NIMBY interests are pushing for more of the same.

 

SOLUTION IS THE PROBLEM

San Francisco Community Recyclers is on the parking lot of Safeway’s Church and Market location, and after months of legal entanglement, the recycling center’s eviction draws near. Still, SFCR is making a show of resistance.

The San Francisco Sheriff’s Department is set to evict the recycling center within a week or so, as the rebel recyclers have so far refused to vacate voluntarily.

Sup. Scott Wiener says he’ll be glad to see them gone.

“This recycling center caused enormous problems in our neighborhood,” he told the Guardian. This particular Safeway lies within the boundaries of his district, and Wiener says his constituents complain the recycling centers draw too many unruly patrons, who are often homeless.

“There is problem behavior around the center in terms of camping and harassing behavior, defecation, urination in a much more concentrated way,” he said.

This animation shows the areas around San Francisco where recycling centers remain, which are often overburdened with customers as other centers close. The red zones indicate areas where supermarkets are mandated by state law to host recycling centers, but have chosen to pay fees instead.

But others say the not-in-my-backyard evictions only serve to create a ripple effect. The catalyst is a story we’ve reported on before: As well-heeled Golden Gate Park neighbors complained of homeless recycling patrons and waged a successful campaign to shutter the Haight Ashbury Recycling Center two years ago, the clientele adjusted by flocking to the Church and Market recycling center. New numbers illustrate this outcome.

Susan Collins is the president of the Container Recycling Institute, a nonprofit that conducts analysis on recycling data. On average nationwide, Collins said, one recycling center serves about 2,000 people.

But since 2012 the number of recycling centers in San Francisco has been reduced from 21 to 7, causing Church and Market’s service population to boom closer to 40,000, a difference that has more to do with the closures than the density of the area. Data from CalRecycle shows almost half of the city’s populace lacks a recycling center within close proximity, forcing patrons to overwhelm the few remaining centers.

“This makes it a chicken and egg process,” Collins told us. “For people to have the perception that the site is attracting so many people, they have to realize it’s because there are so few sites to begin with.”

Late last month, Assemblymember Tom Ammiano wrote to Safeway Chief Executive Officer Robert L. Edwards, urging the grocery chain to reverse its decision to evict San Francisco Community Recyclers from the Church and Market Safeway.

“Safeway has such a long history of supporting sustainability efforts,” Ammiano wrote, “and I truly believe that it can do so again.” Safeway, however, has other concerns.

“As curbside recycling has increased in San Francisco and around the state,” Safeway Director of Public Affairs Keith Turner wrote to Ammiano, “Safeway’s focus on recycling has evolved as well.”

Safeway is now also flouting local and state laws to throw recyclers off its back. CalRecycle, the state’s recycling agency, performed an inspection in April of the Diamond Heights Safeway. It found that the grocer failed to accept recyclables and offer state guaranteed redemption, despite signing an affidavit with CalRecycle pledging to do just that. CalRecycle cited that location and two other San Francisco Safeways for noncompliance with the bottle bill.

And that’s just the violations CalRecycle has documented so far. Ed Dunn, owner and operator of San Francisco Community Recyclers, has initiated his own investigation into Safeway statewide, filing complaints with CalRecycle alleging that as many as 75 Safeway stores aren’t following the mandates of their affidavits and offering redemption for recyclables.

On the other side of the fence, Safeway and other recycling-center critics (such as Chronicle columnist C.W. Nevius) are essentially saying, who cares? Don’t we all just use blue bins nowadays?

The short answer: Nope.

 

MAKING GREEN, GOING GREEN

“Why do we need recycling centers if we have curbside recycling?” Sup. Eric Mar asked the deputy director of recycling at CalRecycle, point blank.

Jose Ortiz responded in less than a beat. “While some communities think curbside operations ensure the state’s goals of collecting [recyclables], the reality is that 90 percent of recycling volume is collected through recycling centers, not curbside programs,” he said from the podium.

That number came as a shock to many at the Board of Supervisors Neighborhood Services and Safety Committee June 19, including Sups. Mar, David Campos, and Norman Yee. Only 8 percent of recycling statewide comes through blue bins, CalRecyle confirmed to the Guardian.

Nor is that limited to California: Data from the Container Recycling Institute shows that the 10 states with recycling redemption laws produce such a high rate of return that they account for 46 percent of the nation’s recycling. And since California Redemption Value recycling is pre-sorted, experts note, the bottles are often recycled whole (as opposed to broken) which can be used for higher-grade recycling purposes.

So for the city with a mandated goal of zero waste by 2020, the case for keeping recycling centers open is an environmental one. It’s also fiscal.

San Franciscans make $18 million a year selling back recyclables, Ortiz said, most of which went directly into the pockets of recyclers. Those scavengers at the Fourth of July festivities may have only collected five cents per can, but that’s enough to buoy the income of many poor San Franciscans.

At the recycling hearing, David Mangan approached the podium to speak. His red hat was clean and his grey sweatshirt was ironed, but his face was worn with worry-lines and creases.

“I can’t walk more than about eight blocks at a time, and I’m unemployable because of my disabilities,” he told the committee. Recycling centers are a lifeline, he added. “I need this job, I’m on a limited income. I need the help they offer. I need them to stay open, please.”

Critics say some poor and homeless depend on a black market of recycling truck drivers who trade drugs for cans and bottles, then turn to recycling centers to make a profit. But those at the hearing said the extinction of recycling centers actually helps the mobile, black market recycling fleets bloom, as motorists have an easier time shuttling recyclables across the city.

So recyclers are increasingly forced to rely on these so-called “mosquito fleets” for far-flung trips to cash in their bottles.

 

SMALL BUSINESS BUST

Meanwhile, recycling center evictions are becoming a source of anxiety within the small business community.

State law establishes a half-mile radius called a “convenience zone” around any supermarket that annually makes more than $2 million. The supermarket is mandated to provide recycling on-site, accept recyclables in-store, or opt to pay a $100 a day fee.

With the eviction of SFCR from Church and Market, Safeway may opt to pay the fee. But that gap would leave surrounding businesses inside that convenience zone with the same options: accept recyclables in-store or pay $36,000 a year.

Miriam Zouzounis of the Arab-American Grocer Association said those options are daunting for liquor stores and mom-and-pop grocers.

“We just don’t have the space for [recycling],” she said at the hearing. If SFCR were to close, the total of small businesses shouldering the burden of state recycling fees would jump from 100 to more than 360, said Regina Dick-Endrizzi, director of the city’s Office of Small Business.

All told, San Francisco small businesses would be made to send $12.96 million in annual fees to California coffers because a few supermarkets didn’t want to handle recyclables. Mar is now calling upon all involved to step up and solve this glaring problem.

 

SOLUTIONS ON THE WAY

This week the Board of Supervisors is tentatively set to vote on a moratorium of recycling center evictions, introduced by Mar on June 24. The pause would give Mar time to form a work group with those involved: Department of the Environment, Department of Public Works, CalRecycle, local supermarkets, grocers, the Coalition on Homelessness, and others to come together to form a compromise solution.

Department of the Environment proposed a mobile recycling center, which Wiener called an equitable solution that would help distribute recycling responsibility evenly across the city. While that agency did not provide a timeline on the creation of a mobile recycling center before our deadline, it’s been in the works since 2012, when then-District 5 Sup. Christina Olague said it was the answer to the Haight Ashbury Recycling Center’s closure.

It’s been a long wait for a solution. And in the meantime, many more stand to lose.

Hearing called for on sudden closure of elder care facility

It’s been several weeks since we reported on the pending closure of San Francisco’s University Mound Ladies Home, a nonprofit elder care facility that has been in operation for 130 years, serving seniors of modest means.

In May, residents – mostly in their 80s or 90s – received eviction notices informing them that they would need to leave by July 10, an announcement that blindsided the elders and their families and caused great concern throughout the broader community. The timeline has since been extended to July 31.

The facility’s administrators, who hired a crisis consultant shortly before announcing the closure, have indicated in meetings with family members and residents that the move was triggered by financial woes.

Sup. David Campos has been working behind the scenes to intervene on residents’ behalf since the announcement, but he’s now called for a public hearing that should finally bring some answers to light. Scheduled for Thu/10, the hearing will take place at the Board of Supervisors’ Neighborhood Services and Safety Committee meeting at 10am.

On July 1, University Mound announced it had reached an agreement with Alta Vista School to sell its facility.

Campos hopes to address the University Mound board regarding plans for residents’ continued care, and on how it envisions helping residents transition out of the facility.

“Closure of this facility places the lives of these residents in jeopardy,” Campos said. “I am gravely concerned with the access to care for these individuals. The closure of the University Mound Ladies Home is endemic of the economic crisis and widening affordability gap that is eroding the values of San Francisco.”  

Anna Stratton, whose mother resides at University Mound and will turn 87 on July 10, is one of many concerned family members affected by the sudden closure.

“I’m concerned that my mother may be one of the residents that does not survive the change from one residence to another,” Stratton said.

She added that when her mother began living in the assisted-care home, they were never given a reason to doubt that University Mound would stay in operation. Stratton’s mother, who has lived in San Francisco since 1957 and volunteered there for 35 years, wanted to live the rest of her life in the city – but won’t be able to do so due to the home’s sudden closure.

“We were not informed of anything,” Stratton said. “It’s very upsetting, not only for my mother, but for all the elders. We have been kept in the dark.”

Free Sunday meters challenge rejected, SFMTA board’s independence questioned

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The San Francisco Board of Supervisors voted to reject an environmental appeal of the decision to repeal paying for parking meters on Sundays, which was voted on by the San Francisco Municipal Transportation Agency in April as part of the agency’s annual budget approval.

It was a hotly contested decision, as competing interest groups fought for their slice of Muni’s funding. SFMTA Chairman Tom Nolan told us at the time, “As long as I’ve been on the SFMTA board I’ve never felt more pressure.”

This week’s appeal to the Board of Supervisors focused on one aspect of the overall SFMTA budget: the repeal of paid Sunday meters. 

“I appreciate there is frustration,” SFMTA Director Ed Reiskin said to the board. That was an understatement.

The Sunday meters benefit many, the appeal’s filers contended: Less cars circled around looking for parking (because more drivers could actually find spots) meant reduced congestion and safer streets for bicyclists and pedestrians. It’s a sign of the strength of the argument that the appeal was filed by transit advocacy group Livable City (whose executive director is BART board member Tom Radulovich) and Mario Tanev, a very bright policy wonk over at the San Francisco Transit Riders Union. 

The SFMTA’s own data proves the Sunday meters were good for the city,” Cynthia Crews of the League of Pissed Off Voters said to the board. “We need to stop playing chicken with public safety.”

But despite the environmental benefits of paid meters, the appeal was rejected. The reasons are buried in political gobbledygook, but untangling the complex story reveals the mayor’s power, and his missteps. 

Firstly, the environmental appeal wasn’t exactly aimed at the meters themselves, but at the SFMTA budget as a whole. That’s because the SFMTA board didn’t vote to repeal Sunday meters directly, but stuffed it into their approved budget, which is exempt from California Environmental Quality Act review. It was like serving up a distasteful Sunday meter fruitcake with the Muni budget holiday meal: You’d better eat the whole dinner, or else you’re not eating at all. 

Budgets are statutorily exempt from environmental review (otherwise there’d be an EIR with every major financial decision). So the Sunday meters were approved through a politically tactical move, shielded by the environmental exemption cloak of the budget.

This meant the environmental appeal yesterday targeted not just the meters, but it could effectively challenge the entire SFMTA’s right to environmental review exception for its budgets, supervisors said. They also warned such a challenge may set a precedent for other budgets from other agencies to not be exempt from environmental review, an onerous burden. That was too big of a pill for the board to swallow, which is likely why only two supervisors voted against granting the SFMTA the CEQA exemption: John Avalos and Eric Mar. 

Yet most of the political maneuvering wasn’t from the board, but from Mayor Ed Lee, a problem Supervisor David Campos used this review hearing to highlight. Even if you do or don’t want to see Sunday meter parking, irrespective of the issue,” Campos said, “I think the way this matter was handled by the SFMTA, respectfully, is not something anyone should be happy with.”

He continued: “Let’s be clear: The reason why the SFMTA budget included an item that did not provide for funding from Sunday meters is because the mayor wanted it that way. We have a budget system that is essentially run by decisions made in the Mayor’s Office.”

We posed this idea in our story “Politics over Policy” [4/22], contending that because the SFMTA is appointed by the mayor (meaning, he picks and chooses who is on the board), the board members are therefore politically beholden to the mayor. 

Campos drove this point home at the meeting: “I think there’s something to be said when the appointment of one official (on the SFMTA board) is entirely dependent on [the mayor], who can disagree or agree with the decisions you made.”

The night before our last story went to print, SFMTA Board Chariman Tom Nolan told us that was in fact exactly what happened on the Sunday meter issue. The SFMTA board, whose directors vote on resolutions every week, received a phone call from the mayor asking for a specific vote. And he got it.

Ed Resikin, myself, and a few others in a conference call [with the Mayor’s Office],” Nolan said. He told us the central message of the call was this: The mayor wanted to put a vehicle license fee increase on the city’s November ballot. In order to do that, the mayor contended, car drivers needed to feel like they weren’t being nickled and dimed. Paid Sunday meters had to go. 

That was where they advanced the idea that the mayor wanted to do that,” Nolan told us. “That call was right before the mayor’s State of the City message.”

Nolan is an affable, straightforward person. The budget the SFMTA passed came on the heels of a fiery meeting, filled to the gills with activists from the senior and persons with disabilties communities. They asked for free Muni for those same groups, which would cost less money than the Sunday meters would bring in — many at the meeting said the meters could pay for the free Muni service. The need is dire, as some seniors said they regularly made the choice between groceries and a Muni pass.

Nolan sounded deeply effected by their stories.

“Muni is for everybody, especially those who need it most,” he said. “The testimony was very heartbreaking. It’s expensive to live in this city.” 

But in the end, he told us, the mayor felt it was best to kibosh the Sunday meters, which deprived the SFMTA of funding to make Muni free for qualified seniors. We asked Nolan if the mayor had outsized influence on the SFMTA board.

“I think people are aware that we are quasi-independent,” he said. “We are clearly part of the city family. I can assure you that this happens very seldom that we get this pressure from the Mayor’s Office. He’s a very open-minded guy, really, and he has a high tolerance for ambiguity, which I like.”

“But,” you don’t turn him down, he said, because, “he’s the mayor.”

SFMTA Board Director Cheryl Brinkman supported paid Sunday meters. But when justifying her vote to repeal them, she told the packed board meeting the “best political minds” in the Mayor’s Office said it was the right thing to do in order to pass the VLF increase ballot measure.

But in a move that outraged Sup. Scott Wiener and many others, just this month Lee dropped the VLF ballot measure altogether for this year, eventually agreeing to support its placement on the November 2016 ballot.

So to pave the way for success at the ballot box the board rejected free Muni for seniors and lost over $10 million in Muni funding. And in the end, the mayor threw all the justification for his compromises out the window.

Best political minds, indeed. 

DCCC calls against Prop B did not have desired effect, did raise questions

Chairperson Mary Jung of the San Francisco Democratic County Central Committee, a highly influential political body that governs the San Francisco Democratic Party, has come under fire for “misuse of funds” after authorizing the use of DCCC dollars to make calls to voters just before the June 3 election.

The funds in question, according to DCCC members who raised concerns, came out of a $25,000 check from billionaire venture capital investor Ron Conway, received by the DCCC May 30.

In a June 16 letter – signed by DCCC members Kelly Dwyer, Hene Kelly, Sup. Eric Mar, Sup. David Campos, Sup. John Avalos and Petra DeJesus – Jung is taken to task for directing $11,674.48 from this donation be used for phone calls placed to voters in opposition to Proposition B, which appeared on the June 3 ballot, just before the election.

As previously reported, a complainant cried foul on this action in a filing with the San Francisco Ethics Commission, because callers seemed to be intentionally misleading voters by implying that the No Wall on the Waterfront Campaign, which backed the measure, was opposed to it.

When we phoned Jung for comment on that complaint, she said she did not have the call script and could not comment on the charge that the calls were misleading. She also said Conway’s contribution was not necessarily put toward the No on B calls. Instead, she told us, she could not link any single donation with any single expenditure, because the DCCC had been conducting broad fundraising efforts leading up to the election.

In their letter to Jung, the dissenting DCCC members argued that her decision to authorize the use of funds for the No on B voter calls violated the organization’s bylaws, because “there was never a vote by the members to expend $11,674.48 to make calls for No on B.” 

The letter points to an article within the board’s bylaws, stating that “Disbursements of SFDCCC funds … shall be authorized by a majority vote of the voting members present and voting at a regular meeting.” 

In the end, San Francisco voters overwhelmingly approved Prop. B, which requires voter approval before building heights may be increased above established limits for new waterfront development projects. However, the measure was not popular among real-estate development interests.

In addition to being chair of the DCCC, Jung is employed as a paid lobbyist for the San Francisco Association of Realtors, making her professionally positioned at the center of the San Francisco real-estate community.

“The power that comes with being the Chair does not mean that you can circumvent Bylaws and advocate and raise money for causes that you happen to also work for,” the authors of the letter stated bluntly. “There is a serious conflict of interest here.”

When the Bay Guardian phoned the DCCC to ask if there was an expert on the organization’s bylaws who might be able to comment on whether the rules had been violated, we were directed to Arlo Hale Smith, a 30-year DCCC member and parliamentarian with a deep understanding of the bylaws.

Smith offered an interesting twist on the matter: He said these funds were indeed “properly expended, under the emergency provision.”

The emergency provision? Yes, Smith explained, the DCCC bylaws contain a provision allowing the DCCC chair and treasurer to authorize the use of funds without first calling a vote, “in the event of an emergency.” This provision has been used in the past, he said, to authorize last-minute expenditures when an election imposes a tight deadline.

Since the money arrived three days before the election, there was no time to call a meeting and vote on it, Smith clarified. That’s why it was perfectly legitimate for Jung to authorize the use of funds. He added that disagreement over the content of the calls warranted a separate conversation.

“Because of when the check arrived – it constituted an emergency,” Smith noted, confirming that he was talking about the check from Conway.

That would be the same check from Conway that Jung told us had nothing to do with the No on B calls.

Sounds like the DCCC is going to have lots to talk about on June 25, when the members who submitted the letter asked for a hearing on this matter.

Here’s the full text of the letter.

DCCC members' letter to Chair Mary Jung

Justice delayed is justice denied

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EDITORIAL Members of the San Francisco Board of Supervisors who try to identify with both the progressive movement and business-oriented Mayor Ed Lee — most notably, Sups. David Chiu and Jane Kim — engaged in a strange bit of self-congratulations during their June 10 meeting, patting themselves on the back for a trio of “progressive” reforms.

Yet in each case, the measures are weaker than they should be and too long overdue — and they have their full implementation delayed for years, while the needs of the people they aim to serve are immediate. What Kim and Chiu presented as a demonstration of political effectiveness on behalf of needy constituents is actually just the opposite. It is political cowardice and not political courage.

The best of the trio of approvals was a measure by Sup. David Campos that finally closes the loophole that allows employers to satisfy their employee healthcare mandate by creating healthcare savings accounts, which they make difficult to use and then pocket the money that remains.

This should have been enacted three years ago when Campos first won approval for it, only to see Lee veto it and Chiu sponsor a watered-down alternative that didn’t address the problem. Even now, in order to win over Sups. Mark Farrell and London Breed to attain a veto-proof majority, Campos had to delay full implementation until 2017.

“I also want to commend Sup. Campos for finding compromise,” Chiu said before joining the inevitable majority, a snide dig at his Assembly race opponent that only served to reinforce Campos’ campaign trail points that Chiu’s compromises are often just sellouts to downtown interests. This watered-down version, albeit better than the last watered-down version, also won unanimous approval.

Another kumbaya moment came with the introduction of a consensus ballot measure for increasing the minimum wage in San Francisco, with the Mayor’s Office and business community finally agreeing with the campaign by labor and progressive groups to increase the minimum wage to $15 — but delaying that implementation to 2018. How much displacement and economic hardship will San Franciscans experience between now than then?

Chiu and Kim also sang the praises of Lee for finally agreeing to finally keep his word and support a local increase in the vehicle license fee to fund safer and smoother streets and more money for Muni. But rather than this year as promised, that measure will be on the November 2016 ballot, pushing it back from prosperous to uncertain times.

At the June 12 Guardian community forum, Sup. Scott Wiener said he may still move forward with his proposed charter amendment to give Muni more general fund money until the local VLF is approved, and we strongly urge him to so do.

“Justice delayed is justice denied” is a legal maxim that this board full of lawyers is certainly familiar with. Their delays of crucial reforms are disgraceful and damaging to the city, and for them to congratulate themselves for doing so is insulting.

Extra! Extra! Sunshine advocates beat the Anti-Sunshine Gang in City Hall

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 By Bruce B. Brugmann

And so the  Anti-Sunshine Gang in City Hall, which for two years has been conducting a nasty vendetta against the Sunshine Ordinance Task Force,  capitulated quietly at Tuesday’s Board of Supervisors meeting without a fight or even a whimper.

The capitulation came in a two line phrase  buried in item 28 in the middle of the board’s agenda.  It was a report from the rules committee recommending  the Board of Supervisors approve a motion for  unnamed nominees to the Sunshine Ordinance Task Force. “Question:  Shall this Motion be approved.”

Board Chair David Chiu asked for approval in his usual board meeting monotone. And the approval came unanimously, with no dissent and no roll call vote and not a word spoken by anybody.  He banged the gavel and that was that. And only a few veteran board watchers knew that this was the astonishing  end to a crucial battle that pitted the powerfuf Anti-Sunshine Gangs against the sunshine forces and the citizens of San Francisco. It was a battle that would decide whether the task force would remain an independent people’s court that would hear and rule on public access complaints.  Sunshine won.

It was ironic and fitting that Chiu presided over the capitulation. For it was Chiu as board president who orchestrated  the deal to demolish Park Merced and then orchestrated the  infamous 6-5 board vote  in September 2010 approving  a monstrous redevelopment  project that would evict lots of tenants, and destroy most of the affordable housing. This was a big deal because the housing crisis was heating up and Park Merced was the largest affordable community in the city and one of the largest In the nation. This is where tens of thousands of young people, young married couples, students and faculty at nearby San Francisco State, older people, and middle class people had come for generations with their families to live in affordable housing in an  “urban park,” as Park Merced promo once put it.

And it was Chiu as board president who was charged by the Sunshine Task Force, along with Supervisors Scott Wiener, Malia Cohen, and Eric Mar with violating the Sunshine Ordinance and the state’s open meeting law (Brown Act) when they approved the project with blazing speed.. 

Wiener, Cohen, and Mar were on the board’s Land Use and Economic Development Committee when they voted on the contract. Literally minutes before the committee vote, Chiu introduced 14 pages of amendments to the contract. The deputy city attorney at the meeting blessed the amendments by saying, gosh, golly, gee, no problem, the amendments do  not substantially alter the contract and therefore the description of the item on the agenda was still apt and the committee could act on it. Bombs away! The full board approved the contract the same day by one vote.

This sleight of hand and pellmell approval process meant that Park Merced was going,going, gone and in its place would be a project that “has no hindsight, no insight, or foresight,” as Planning Commissioner Kathryn Moore was quoted as saying in a scathing Westside Observer column by landscape architect Glenn Rogers. “It is not a project of the 21st century.  It is the agenda of a self-serving developer.”

 The Observer, to its immense credit, was the only media in town to blast away at the project. (Read its coverage and weep, starting with a June piece by Pastor Lynn Gavin who wrote that the Park Merced owners did not disclose to her or her family that they “were going to demolish the garden apartment that was our home.”)  Gavin and her neighbors took the formal complaint to the Sunshine Ordinance Task Force and got a unanimous 8-0  ruling condemning Chiu, Wiener, Cohen, and Mar for open government violations.

It was a historic ruling by the task force and demonstrated once again in 96 point tempo bold the irreplaceable value of the people’s court.  The ruling also had impact because it amounted to a stinging  expose of how government often works in San Francisco with big money and big development and how one vote can add gallons of high octane petrol to the housing crisis. It angered the hell out of the six supervisors who voted for the project.

 And in effect, it gave rise to what I call the Anti-Sunshine Gang in City Hall whose response to the ruling was, not to apologize and change their illegal ways, but to start a vicious vendetta against the task force for doing the right thing at the right time.  The six votes were David Chiu, Scott Wiener, Malia Cohen, Mark Farrell, Sean Elsbernd, and Carmen Chu. Elsbernd has gone on to Sen. Diane Feinstein’s office in San Francisco and Chu to becoming assessor. But the gang picked up other allies along the way, notably the city attorney’s office.

Two years ago, when the task force members came to the board for reappointment, the Anti-Sunshine Gang retaliated and swung into action by “launching a smear campaign aimed at purging the eight task force members who had unanimously voted to find the violations,” according to Richard Knee, a 12 year veteran of the task force, in a June column in the Observer.  Knee, who represents the local chapter of the Society of Professonal Journalists, also wrote that “the mayor and the Board of Supervisors…made sure that the panel gets minimal funding, staffing and resources, and the board has refused to fill two long standing vacancies, making It difficult at times to muster a quorum since task force members are volunteers with outside responsibilities such as family and work.

“Two year ago, the board’s failure to appoint a physically disabled member forced the task force to take a five month hiatus, exacerbating a backlog of complaints filed by members of the public.This year, Knee wrote,  the start of the appointment process was “farcical and ominous.”  He explained that, at the May 15 meeting of the board’s rules committee, which vets applicants for city bodies, the two supervisors present chair Norman Yee and Katy Tang (David Campos had an excused absence) “complained that there weren’t enough racial/ethnic diversity among the 13 candidates. “That didn’t deter them from recommending the reappointments of Todd David, Louise Fischer, and David Pilpel, all Anglos.”

Before the full board five days later, Yee complained again, “this time that lack of a regular schedule and frequent switching of meeting dates were making attendance difficult for task force members. Either Yee had no clue of the facts or he was lying.” Knee explained that the task force normally meets the first Wednesday of each month and its subcommittees usually meet during the third week of the month.

“Meeting postponements and cancellations are the result, not the cause, of difficulties in mustering a quorum, due to the vacancies—which now number three.

“In gushing over David, Fischer, and Pilpel, at the board’s May 20 meeting, Wiener offered no evidence or detail of their alleged accomplishments and ignored the fact that David has missed six task force meetings since March 2013, including those of last February and April. Until the board fills the other seats, the five remaining incumbents—Chris Hyland, Bruce Oka, David Sims, Allyson Washburn, and yours truly—stay on as ‘holdover’ members.”

Meanwhile, by the next session of the Rules Committee on June 5, the sunshine advocates had rallied and put together an impressive mass of sunshine power. Testifying at the hearing were representatives from SPJ and the journalism community, the League of Women Voters, the ACLU, the sunshine posse, the Library Users Association, the Bay Area News Group, the Inter-American Press Asociation, the Center for Investigative Reporting, the UC-Berkeley Graduate School of Journalism, the First Amendment Coalition, the  Electronic Frontier Foundation, the Observer and neighborhood activists, and other sunshine allies and FOI groupies. It was quite a show of force. 

SPJ placed a pointed, timely op ed in the Chronicle (“SF Supervisors block Sunshine Ordinance Task Force,” good of the Chron/Hearst to run it but better if the paper didn’t black out local sunshine issues.) Members of the posse peppered the gang with public record requests aimed at tracking skullduggery and they found it. Reps from the groups lobbied the supervisors by email, phone, and personal office visits. And the word that the Anti-Sunshine Gang was back and on the gallop shot through the neighborhoods and around town and into election campaigns and among constituents of the gang.

SPJ and its vigorous Freedom of Information Committee under co-chairs Journalist Thomas Peele, of Chauncey Bailey fame, and Attorney Geoff King  were particularly effective. Peele is an investigative reporter with the Bay Area Newspaper Group, a lecturer on public records at the UC-Berkeley Graduate School of Journalism, and author of a respected book on Chauncey Bailey, a black journalist murdered on his way to work.

The word got around that the supervisors were blocking strong pro-sunshine candidates for the task force and that their first three nominees were the weakest of the lot. Campos, a stellar sunshine advocate, was back at the committee meeting, making the right calls and shepherding the strong nominees along through the committee and the Board of Supervisors.  Great job.

The cumulative weight and force  of the presentations of the nominees and the sunshine advocates made the proper political point:  any supervisor who voted with the Anti-Sunshine Gang was going to face their constituents and voters with the brand of being anti-sunshine and anti- government accountability.  More: they would have to answer some embarrassing questions: Who lost Park Merced? Who voted to turbo charge evictions and middle class flight from the city for years to come? Who tried to cover up the outrage and who did it? And who led the retaliatory vendetta against the Sunshine Ordinance Task Force for doing the right thing on behalf of sunshine in San Francisco?

And so the Board of Supervisors was dragged kicking and screaming into the sunshine of June 2014 and beyond. The supervisors ended up nominating what looks to be one of the strongest pro-sunshine task forces: Attorney  Mark Rumold and journalist Ali Winston from SPJ, Allyson Washburn from the League of Women Voters, Attorney Lee Hepner, Journalist Josh Wolf, and holdover Chris Hyland. Plus Bruce Oka who looks to be a late holdover in the disabled seat. Congratulations for hanging in and winning, hurray for the power of sunshine, on guard,  B3

P.S. l: PG&E institutionalizes City Hall secrecy and corruption:  The pernicious influence of the Anti-Sunshine gang hung heavy over the rules committee.  Tang tried to force every candidate to take a pledge of allegiance to the city attorney. Tang is the kind of neighborhood supervisor (Sunset) who has a 100 per cent Chamber of Commerce voting record. Her city attorney pledge demand was laughable on its face, given the fact that the city attorney refuses to move on the PG&E/Raker Act scandal and thus has helped institutionalize secrecy and corruption in City Hall on a multi-million dollar scale for decades. Which is reason enough for the city to always maintain a strong, enduring Sunshine Ordinance Task Force, to help keep tabs on how PG&E keeps City Hall safe for PG&E and its allies. (See Guardian stories and editorials since 1969.)  

Tang and Yee continued the gang’s hammering on Bruce Wolfe, a worthy candidate for the disabled seat whose main sin was that he was one of the Honorable Eight who voted condemnation.  The gang knocked out Wolfe as a holdover candidate the first time around and they were at it again at the committee meeting. Oka says he wants to resign from the task force but only when the board finds a good replacement. Wolfe, who was an effective and knowledgeable sunshine task force member, is the obvious replacement but he is still on the purge list.  Stay tuned on this one. . 

There are three things that no one can do to the entire satisfaction of anyone else: make love, poke the fire, and run a newspaper. William Allen White, 1917, line atop the editorial page of the Durango Herald, Durango, Colorado. 

Elderly assisted living facility residents face eviction

A San Francisco-based assisted living facility for the elderly is slated for eviction July 10, a jarring and unexpected turn of events for families who are concerned about their loved ones’ health and wellbeing. However, concerned families and the facility’s board of trustees are working in tandem with city officials to craft a solution, so a different outcome may still be in the works.

Just before Mother’s Day, residents received 60-day eviction notices announcing the pending closure of University Mound Ladies Home. Residents were told that the facility would be closing its doors due to insurmountable debt, and that they would have to vacate by July 10.

“The current residents had expected to spend the rest of their lives there, in peace,” said Sandra Parker, whose mother Alice Parker, 89, has been a resident there for nearly three years. “They do not want to move.”

Located in San Francisco’s Portola District, University Mound – which houses men as well as women – has been at its current location since 1884. As a charitable organization, its mission has always been to provide an affordable community-based assisted living option.

University Mound provides housing and care for 52 residents, with licensing to care for up to 72, including 60 who are unable to walk without assistance. Many are in their late 80s or early 90s, making an abrupt move a difficult and potentially dangerous prospect.

Bill Brinkman of Jigsaw Advisors, a crisis management consultant, was hired to assist the troubled elder care center. The Bay Guardian was unable to reach Brinkman to ask what had led to the dire financial straits, or what possible resolutions were being contemplated.

“They’re saying the debt is based on a broken business model. In 2006 or 2008 the community stepped in, and somehow kept it going,” explained Parker, noting that Brinkman and the board of trustees had told family members that the nonprofit’s debt amounted to $600,000. “I don’t think they did due diligence to keep them financially sound.”

Sup. David Campos, whose District 9 includes the facility, has initiated a process to try and work with the elder care facility to stave off the pending displacement and identify some solution to prevent immediate closure. However, as of June 11, Campos’ legislative aide Laura Lane informed us that despite attending meetings and approaching University Mound to find out what viable options might be available, the elder care center had yet to identify a workable solution.

Campos and affected family members also enlisted the help of Mayor Ed Lee to try and secure emergency funding for University Mound, with Parker noting that a figure of $300,000 had been floated in meetings as a requested amount. Christine Falvey, a spokesperson for Mayor Lee, did not return calls seeking details about that possibility.

Meanwhile, a property records search revealed that the University Mound entered into a deed of trust with three corporate shareholders on May 27, more than two weeks after the eviction notices were issued.

Under a deed of trust arrangement, a borrower transfers their interest in real property – in this case, the stately 1932 brick building that houses the elder care home at 350 University Street – to a neutral trustee, who holds the interest until a debt is repaid. It appears this was done in exchange for a loan of $1.7 million, provided by three lenders: Rubicon Mortgage Fund, a limited liability company based in Lafayette; Pacific BVL Corporation, a San Francisco-based corporation; and Daniel Weiss, named as trustee, whose company is described as The Weiss Company, Inc., a 401(K) Profit Sharing Plan.

If University Mound defaults on the loan, the the property could revert to the trustee. According to an automated report from the San Francisco Assessor / Recorder’s office, the building is valued at $2.1 million, not including the land, which is valued at $840,000.

It is unclear why University Mound, under Brinkman’s interim leadership, opted to take on more debt and enter into a deed of trust after sending out eviction notices to its residents and announcing the facility’s pending closure. This could be a strategy for paying off existing debt, or it could be a sign that the facility is trying to find a solution for staying in operation beyond July 10. If Brinkman responds with more information, we will update this post.

When we dialed a number listed online that corresponded to Weiss’ company, and to the address listed on the deed of trust, the person who answered the phone said he wasn’t Weiss, but that he did not believe Weiss had any involvement with such a deal. Pressed for more information, the person said, “I’m just here fixing a computer. I just picked up the phone.”

The University Mound Board of Trustees was scheduled to meet last night, June 12, and again on June 17. At this juncture, it seems there have been no updates as to whether the current residents will be granted an extension or if they will be forced to move by July 10.

“Because we have been kept in the dark as to the financial situation is at UMLH, and how the situation has developed, we do not have confidence that every avenue and creative solution has been explored and considered to keep UMHL open and not displace the current residents,”  said Parker.

Campos wins veto-proof support for closing the city healthcare coverage loophole UPDATED

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Sup. David Campos appears to have finally succeeded in his years-long quest to prevent San Francisco employers from pocketing money the city requires them to use for employee health care costs after winning over two key supervisors to secure a veto-proof majority at today’s [Tues/10] Board of Supervisors meeting.

His reform legislation on today’s agenda will be amended by Campos, he told us, to win the support of Sups. Mark Farrell and London Breed. The changes phase out the loophole over three years, making 60 percent of the money in employee health savings accounts off limits to employers next year, 80 percent the following year, and not letting employers reclaim any of these funds by 2017.

“Even if we don’t get to 100 percent right away, once you get past 50 percent it’s a done deal, so I feel good about it,” Campos told us, explaining that even the phased-in legislation will immediately discourage employers from using health savings accounts and to instead put that money toward private insurance or city-run programs such as Healthy San Francisco.

The veto-proof majority is key given that Mayor Ed Lee vetoed similar legislation in 2011, later signing a watered down compromise measure by Board of Supervisors President David Chiu that required employers to maintain the funds for two years before taking them back.

Campos said that reform clearly didn’t work, with that total funding left over in the health savings accounts rising from about $60 million two years ago to about $90 million now. That outcome was predicted by Campos at the time, noting that employers had a disincentive to encourage employees to tap the funds.

“It didn’t work. The numbers showed the money still wasn’t being spent, which is what we said would happen,” Campos told us.

Exacerbating the problem was the fact that the federal Affordable Care Act (aka Obamacare) placed new restrictions on how health savings accounts may be used, fro example banning their use on insurance premiums. Health savings accounts are widely considered far inferior to private insurance at providing quality healthcare, but federal law (ERISA) precluded the city from banning their use by employers to satisfy the city’s health coverage requirement.

Supervisors who haven’t yet committed to supporting Campos’ legislation are Chiu, Scott Wiener, and Katy Tang, but Campos predicted they may sign on now that the measure has a veto-proof majority: “We’re hopeful that with a veto-proof majority, it may be a unanimous vote at the board.”  

UPDATE 6/10: The board unanimously passed the measure on first reading, prompting a sustained standing ovation from the workers and labor advocates who filled the board chambers for the hearing.